With last year’s opioid settlement behind it, Walgreens Boots Alliance posted first-quarter results exceeding Wall Street estimates despite an adjusted earnings decline and negative comps in the retail operation.
Company net loss was $67 million, or eight cents per share, versus $3.72 billion, or $4.31 per share, in the year-prior quarter. Adjusted for one-time events, company net earnings were $571 million, or 66 cents per share, versus $1 billion, or $1.16 per share, in the year-previous quarter.
Walgreens adjusted earnings per share beat a Yahoo Finance-published analyst consensus estimate of 61 cents while revenues topped a $34.86 billion estimate.
Sales were $36.71 billion versus $33.38 billion in the year-before quarter, Walgreens reported. Operating loss was $39 million versus an operating loss of $6.15 billion in the year-earlier period while adjusted operating income was $687 million, down 33% on a constant currency basis year over year, the company maintained, reflecting softer U.S. retail market trends, partly offset by improved profitability in Walgreens U.S. Healthcare business and international growth.
U.S. Retail Pharmacy segment sales were up to $28.94 billion from $27.2 billion while adjusted operating income was $694 million versus $1.11 billion in the year-past quarter. Comparable sales increased 8.1% in the quarter year over year while retail comps declined by 5%, hit by macroeconomic-driven consumer trends, a weaker flu and respiratory illness season and Thanksgiving holiday store closures, Walgreens asserted.
In announcing the financial results, Walgreens CEO Tim Wentworth said, “WBA delivered fiscal first-quarter results in line with overall expectations, reflecting disciplined execution in a challenging consumer backdrop. We are evaluating all strategic options to drive sustainable long-term shareholder value, focusing on swift actions to right-size costs and increase cash flow, with a balanced approach to capital allocation priorities. Today, we are announcing a 48% reduction in our quarterly dividend payment, while maintaining a competitive yield. We are proud to be a trusted and independent partner of choice, delivering healthcare to millions of people. And, we will leverage our local, convenient presence to engage with patients and help payors, providers, and pharma companies also achieve better health outcomes at an affordable cost.”
